Fundamental Economics

3. system in which economic decisions are left up to producers and consumers
5. what motivate individuals, businesses, and gov't to undertake or avoid an action
8. distribution of goods
11. how individuals, businesses, and gov'ts choose to use limited resources
13. the way a country organizes economic activity
18. gifts of nature we use to produce goods and services
19. result of people having unlimited wants and limited resources
21. comparing marginal costs and marginal benefits of a choice or action
22. change in total benefit received from one more unit
23. total satisfaction gained from consuming a good or service
24. economic model that illustrates possible production combinations
25. resources used to produce goods and services

1. individuals concentrate on a single activity or an area of expertise
2. knowledge and skills people gain from education
4. what to produce, how to produce, for whom to produce
6. efficiency with which goods and services are produced
7. when a resource, good, or service becomes unavailable
9. system in which decision about production and consumption are made by a central authority
10. change in total cost paid for one more unit
12. the tools and equipment used in production
14. economic system in which both gov't and individuals play important roles
15. act of willingly trading one item or service for another
16. way a person lives that can increase with education/training
17. the point where marginal benefit equals marginal costs
20. value of the next best choice that is given up when making a choice